What’s a gift that’s more thoughtful than a stack of cash, doesn’t require leaving the house and keeps on giving longer than a jelly-of-the-month club membership? Stock. And gifting it is easier than you think, and doing so may offer a few perks for you, too.
The benefits of gifting stocks
Hang around seasoned investors long enough, and you’ll likely hear a familiar refrain: If only I’d started investing sooner. Giving stocks as a gift can help your family and friends put this advice into practice — especially kids, who may benefit most from long-term compounding returns.
And if you’re giving stocks you already own, there could be a tax advantage for you. According to Karl Schwartz, a certified public accountant and principal at Team Hewins in Boca Raton, Florida, from a tax perspective, gifting is a smart way to transfer an appreciated stock.
“Let’s say you’re an adult and you have this stock with a lot of gains built into it. If you were to sell it, you would pay taxes on the gain. Assuming it’s long-term, you might pay 15%,” he says. But instead of selling the stock, you could give it as a gift, transferring the gains to the recipient.
“The person who received the stock now has that appreciated stock. They can hold it if they want, but if they sell it, assuming they’re in a lower tax bracket, they might pay 0% in capital gains taxes,” Schwartz says.
In other words, both the giver and receiver could avoid paying capital gains altogether on stock that’s been appreciating for years. (Learn more about how capital gains taxes work.)
That’s not the only route to giving stocks, though. You can also buy stocks or other securities you don’t already own, then gift them. Here are four ways you might consider gifting stocks this year.
Other ways to give with cash:
Leave a gift in your will or trust.
Just one sentence, you can complete your gift to Down Syndrome of Louisville. This type of donation in your will or living trust helps ensure that we can continue to serve individuals with Down syndrome well into the future.
Charitable Gift Annuities
With a charitable gift annuity you agree to make a gift to DSL and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The balance is then used to support our mission.
Charitable Remainder Trust
If you have a trust in place already, you may consider a charitable remainder trust. This type of trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create. Then at the end of the trust term, the balance in the trust goes to support Down Syndrome of Louisville.
A donor-advised fund (DAF), is like a charitable savings account- gives you the flexibility to recommend how much and how often money is granted to DSL or other qualified charities. You can recommend a grant or recurring grants now to make an immediate impact or use your fund as a tool for future charitable gifts.
Memorial & Tribute Gifts
If you or your family has been touched by Down Syndrome of Louisville, establishing a memorial or tribute gift is a meaningful way to honor them or celebrate a special occasion. Your memorial or tribute gift will extend the legacy of your loved one and will make a difference here at DSL.
Give to the Down Syndrome Education Foundation
A gift to Down Syndrome Education Foundation today provides a brighter future for DSL tomorrow. When you make a donation to the Down Syndrome Education Foundation, you give a gift with both immediate and long-term benefits.
Foundation donations are invested. A portion of the annual income from the investment is used to address immediate needs at DSL. The remaining funds are reinvested to ensure indefinite support.
*State laws govern transfer on death accounts. Please consult with your bank representative or investment advisor if you are considering this gift.